A Guide to Regulated Crypto Exchanges in Canada

·

The regulatory landscape for cryptocurrency in Canada is defined by strict guidelines set forth by the Canadian Securities Administrators (CSA). This framework is designed to enhance investor protection, leading some international platforms to exit the market while fostering a secure environment for compliant, registered exchanges.

For Canadian investors, navigating this ecosystem means understanding which platforms are fully regulated, which are operating under interim measures, and which are prohibited. This guide provides a clear overview of the current state of crypto exchanges in Canada.

Fully Registered and Regulated Canadian Crypto Exchanges

The following platforms are among those that have achieved registration as restricted dealers and marketplace operators, making them fully compliant with current Canadian regulations.

Bitbuy

Established in 2016, Bitbuy is a leading registered crypto platform in Canada. It operates as a registered restricted dealer and marketplace for crypto assets and is a FINTRAC-registered Money Service Business (MSB). Its approval by the Ontario Securities Commission (OSC) and the CSA makes it one of the country's most secure and trusted platforms.

Canadians can trade over 35 cryptocurrencies on Bitbuy. The platform offers two trading experiences: Bitbuy Express for simple trades with a fee of up to 2%, and Bitbuy Pro for advanced trading with fees between 0% and 2%.

Wealthsimple Crypto

Wealthsimple Crypto offers a simple, user-friendly app for trading and staking digital assets. It is operated by Wealthsimple Digital Assets Inc. (WDA), a restricted dealer operating under a time-limited registration through the CSA’s Regulatory Sandbox.

The platform provides access to over 50 cryptocurrencies. It charges an all-in-one operational fee of approximately 2%, which is applied as a bid-ask spread on transactions.

Newton

Newton is a prominent crypto platform registered as a restricted dealer with the Ontario Securities Commission (OSC). It is also a FINTRAC-registered MSB and is registered with securities regulators in all Canadian provinces and territories.

As a leader in regulatory compliance, Newton offers a trusted environment for trading over 70 digital assets. Fees are built into the spread and typically range from 1% to 2.50%.

Shakepay

Shakepay operates as a commission-free crypto trading platform registered as a restricted dealer in digital assets. It is registered with the Autorité des Marchés Financiers (AMF) and other provincial securities authorities, in addition to being a FINTRAC-registered MSB.

The platform focuses exclusively on Bitcoin and Ethereum. Instead of charging a direct commission, it applies a bid-ask spread to buy and sell orders.

Other Registered Platforms

Crypto Exchanges Banned in Canada

The Canadian Securities Administrators maintain a list of platforms that are explicitly banned from operating in the country. As of now, the banned platforms are:

These platforms have been issued permanent bans for failing to comply with Canadian securities law.

Exchanges That Have Voluntarily Exited the Canadian Market

Citing the CSA's enhanced investor protection guidelines as unfavorable to their operational model, several major international exchanges have chosen to voluntarily withdraw from the Canadian market. These platforms are not necessarily "banned" but are no longer available to Canadian users.

This group includes:

Platforms Operating Under a Pre-Registration Undertaking

Some exchanges have committed to the CSA’s new guidelines by providing a pre-registration undertaking (PRU) to their principal regulator. This agreement allows them to continue operating under exemptive relief while their application for full registration is reviewed.

This group includes several well-known names:

These platforms are working towards full compliance and are currently allowed to serve Canadian users. To stay updated on the latest regulatory approvals, you can 👉 explore more about compliant trading platforms.

Frequently Asked Questions

Which crypto exchanges are officially banned in Canada?
KuCoin and Poloniex are the only two exchanges that have been officially and permanently banned by the Canadian Securities Administrators.

Is Kraken allowed in Canada?
Yes, Kraken is currently allowed to operate in Canada. It is one of the platforms that has entered into a pre-registration undertaking with regulators as it works towards full registration.

Can Canadians legally use Coinbase?
Yes, Canadians can legally use Coinbase. The platform has committed to a pre-registration undertaking with the OSC, which grants it exemptive relief to operate while pursuing full regulatory registration.

What does it mean for an exchange to be a "restricted dealer"?
A "restricted dealer" is a registration category for crypto trading platforms. It means the platform is authorized to operate but must adhere to specific conditions set by securities regulators, which often include strict custody rules, investor protection measures, and prohibitions on offering margin or leverage trading.

Why did exchanges like Binance leave Canada?
Exchanges like Binance cited the CSA's new guidelines, particularly those related to investor protection measures and limits on stablecoin trading, as being incompatible with their business model, leading to their decision to exit the market voluntarily.

How can I verify if a crypto exchange is regulated in Canada?
The best way to verify a platform's status is to check the official websites of the Canadian Securities Administrators (CSA) and the Ontario Securities Commission (OSC), which maintain and publish lists of registered and banned platforms.